National Assembly passes bill to abolish FBR Policy Board

The National Assembly on Wednesday passed the Federal Board of Revenue (Amendment) Bill, 2026, clearing the way for the abolition of the FBR Policy Board.

According to a news report, the bill says the Federal Government recently established a Tax Policy Office within the Ministry of Finance to independently analyse and develop fiscal policies on its behalf. The establishment of the Tax Policy Office makes the functions of the Policy Board redundant.

The move is aimed at separating fiscal policy formulation from the revenue administration functions of the FBR.

The amendment therefore removes Section 6 and related references to the Policy Board from the Federal Board of Revenue Act, 2007.

The bill omits Section 6 of the Federal Board of Revenue Act, 2007, along with all ancillary references to the Policy Board.

Section 6 had provided for the establishment of a Policy Board responsible for giving policy guidelines on fiscal policy and helping achieve the goals and targets of the Federal Board of Revenue.

According to the statement of objects and reasons, the Federal Government will continue to hold powers to appoint the Chairman and Members of the Board.

However, the Secretary, Revenue Division, will also be empowered to appoint Members of the Federal Board of Revenue through transfers and postings of officers in BS-21 and above placed at the disposal of the FBR.

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb tabled the bill in the House after the approval of supplementary grants. The Senate had already passed the bill on June 18, 2026.

The National Assembly approved the bill by majority vote after rejecting amendments moved by Alia Kamran of JUI-F.